Congress threatens Afghanistan over US exit taxes

WASHINGTON (AP) - Lawmakers are advancing legislation to withhold $5 in foreign aid to Afghanistan for every $1 in taxes imposed by President Hamid Karzai's government on U.S. goods taken out of the country.

Democratic Sen. Patrick Leahy says he has seen some "stupid things" from Afghanistan's government, but the threat of exit tax on American property goes "beyond the pale."

Republican Sen. Lindsey Graham said talk of such taxes after 12 years of U.S.-led stabilization efforts was "ridiculous."

The legislation was included as an amendment to the Senate's 2014 foreign operations bill. A Senate Appropriations subcommittee passed it by voice vote Tuesday.

The bill reduces next year's State Department's diplomacy and aid budget by 5 percent. The cuts are far less severe than the 20 percent a House panel approved last week.